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‘Historic’ new powers to Holyrood fail to wow SNP

No-one Scottish impressed by Smith ommission

SCOTLAND should be granted new powers over welfare and tax - but not too much, the Smith commission on devolution recommended yesterday.

Westminster politicians hailed the proposals as "radical" and "historic."

But Scottish National Party leader Nicola Sturgeon branded them "disappointing" and said they fell short of promises made by pro-union parties in the heat of the independence campaign.

Scottish TUC general secretary Grahame Smith said he was "underwhelmed" by a package that would do little to tackle inequality.

The proposals - phase one of the alternative to independence offered up to lure Yes referendum voters into the No camp - fell far short of trade union proposals.

Mr Smith said: "Whilst there are positive elements, we are underwhelmed by the package as a whole which does not meet our aspirations."

The 28-page report proposes small changes to Scotland's limited fundraising powers - such as over parts of income tax - and states that decisions on borrowing powers should be based "on clear economic principles" and remain "consistent with a sustainable overall UK fiscal framework."

National insurance, the minimum wage and corporation, capital gains and inheritance taxes would all still be controlled by Westminster under the proposals, as would the bulk of social security policies.

But Scotland would be allowed to "top up" core payments such as universal credit, maternity, sickness and child benefits.

And any fundraising or spending changes in devolved areas would affect the grant Scotland receives under the Barnett formula, which would be retained under the plans.

In the Commons Scottish Secretary Alistair Carmichael hailed the package as "an historic moment" heralding "substantial" new powers.

His Labour shadow Margaret Curran claimed it was "more radical and goes further than many had anticipated," urging a constitutional convention to progress the devolution of powers to "all the nations and regions" of Britain.

But Mr Smith warned: "Without the key powers over inheritance and capital gains taxes, meaningful tax and land reform will be more difficult.

"Control over employment law, equalities and minimum wages is a necessity if inequality is to be effectively challenged."

 

Smith commission recommendations:

• Control of onshore oil and gas taxes, but not offshore revenues

• No power over minimum wage

• Control of and power to change some areas of social security

• No control over universal credit or maternity, child benefit and sick pay, but ability to "top up" payouts

• No power over national insurance or inheritance, corporation or capital gains tax

• Income tax and VAT to remain "shared" between Scotland and Westminster

• Control over the air passenger duty

• Ability to bring in voting at 16 for local and Scottish elections

• Power to allow public control of Scottish-run rail franchises and over road speed limits and traffic signs

• Scotland to be "formally consulted" over energy, telecoms, transport and the BBC

•Power over programmes for the unemployed

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